U.S. futures fall as Alphabet, Tesla earnings disappoint

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U.S. futures fall as Alphabet, Tesla earnings disappoint

Traders work on the floor of the New York Stock Exchange (NYSE) on July 22, 2024 in New York City.

Spencer Platt | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Waiting gameWall Street closed slightly below the break-even mark ahead of earnings from technology megacaps. The

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slipped 0.16% a day after its best performance since early June. The

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slipped 0.06% and the

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dipped 0.14%. The yield on the 10-year

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was little changed, while

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fell to their

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.

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after Alphabet and Tesla reported earnings.

Tesla auto revenue drops

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‘s

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as automotive sales declined for the second consecutive quarter. Its

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to a three-year low due to increased expenses on AI infrastructure for self-driving cars and price cuts to combat declining sales. CEO Elon Musk said Telsa will unveil its robotaxi on Oct. 10, two months later than planned. Musk also posted a poll on X asking whether

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. Tesla’s stock dropped nearly 8% in extended trading. 

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ad miss

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,

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’s parent company,

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, but

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advertising revenue disappointed. Overall revenue grew 14% year-over-year, driven by search and cloud, which surpassed $10 billion in quarterly revenues and $1 billion in operating profit for the first time.

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’s ad revenue fell short of estimates amid increased competition from platforms like TikTok. CFO Ruth Porat said the company is committing a

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. Alphabet shares dipped 2% in after-hours trading.

GM skids

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‘

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but shares fell 6% as it restructures its struggling autonomous vehicles and ******** business. GM also said it is

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. Analysts expressed concern that GM’s earnings may have peaked. Morgan Stanley’s Adam Jonas warned that historical trends suggest the current positive performance may not be sustainable. RBC Capital Markets’ Tom Narayan highlighted GM’s expectation that second-half earnings will be $2.5 billion lower than in the first half.

Asia decline, EV makers slideMarkets in the Asia-Pacific region fell after lacklustre earnings from Alphabet and Tesla. Hong Kong’s

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fell 0.62%, led by

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. Hong Kong-listed shares of

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 and

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tumbled more than 5% each. Mainland China’s CSI 300 dipped 0.6%. Japan’s export-heavy

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fell 1% even as business activity returned to growth. South Korea’s

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and Australia’s

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fell, while Taiwan’s market was closed due to a typhoon. 

[PRO] Five growth stocksAs investors shift toward smaller growth stocks on rate cut expectations, CNBC Pro interviewed fund managers for

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. 

The bottom line

While former President Donald Trump is gaining popularity among

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, it can’t go unnoticed that the Biden administration has enabled investors to trade bitcoin and ether through an increasing number of exchange-traded funds.

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, marking a significant milestone for the cryptocurrency. The overall response has been more subdued compared with the debut of

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ETFs earlier this year, which saw over $16 billion in net inflows.

“We think it’ll be about 20% as many flows will go into the ether ETF in the first six months that went into bitcoin [ETFs],” Mike Novogratz, CEO of Galaxy Digital, said in a “Squawk Box” interview. Still, he said it is a significant development for crypto.

Samara Cohen, BlackRock ETF & Index Investments CIO, underscored the technological difference between the two cryptocurrencies. “

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,” Cohen told CNBC’s “Squawk on the Street.” “It may take more time for people to understand the applications of ethereum.”

“While bitcoin is really known for its scarcity, its 21 million finite supply, ether is a totally different use case. Ether is known for its utility; it is a programmable blockchain designed to let developers build decentralized applications on the blockchain ecosystem.”

“For people like us, who are really interested in what the next phase of markets will look like and the possibility to deploy new technology to create innovative use cases and applications, this is a really important space to watch in ethereum.”

Ether may be one for the future, but investors were also focused on corporate earnings which are off to a strong start. About 20% of S&P 500 companies have posted second-quarter results, with 80% of those names beating expectations, FactSet data shows.

Analysts at Wolfe Research are hoping earnings from the so-called Magnificent Seven could “

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. “In our view, a batch of better-than-expected reports could potentially stem the current selloff and spark a forceful bounce,” according to Wolfe Research.

Well, that “forceful bounce” may be some way off, with both

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and

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delivering disappointing figures after the closing bell. You can read more on the

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 trading here

— CNBC’s Jesse Pound, Tanaya Macheel, Jennifer Elias, Lora Kolodny, Samantha Subin, Alex Harring, Fred Imbert, Spencer Kimball, Sheila Chiang, Weizhen Tan and Lim Hui Jie contributed to this report.

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#U.S #futures #fall #Alphabet #Tesla #earnings #disappoint

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